A car is a necessity for most of us. It is difficult to make a living without having a reliable means of transportation. You can take the bus or train, but the convenience of a car allows you to accomplish more in an efficient manner.
People with bad credit, often find it difficult to finance big name purchases such as homes, cars, furniture, appliances, etc. Having repossessions, bankruptcies, charge-offs, liens or judgments on your credit report identifies you as a credit risk and creditors are likely to be reserved when, it comes to extending you credit.
These obstacles however should not prevent you from owning what you need. Yes, it is true that you will probably have to make your purchase at a higher interest rate than someone with a good FICO score and you will have to shop around longer to find reasonable interest rates - but all is doable. If you have bad credit and your are trying to purchase a car, follow these guidelines and will drive off the lot in your own car:
Get your credit report
If you suspect that your credit leaves something to be desired, the first thing you should do, is understand your credit situation and how creditors view you. The only way to do this, is to get a copy of your credit report. Get your free credit report to find out your credit score.
Once you get your credit report, inspect it to ensure that all details are familiar and that they are no red flags. If you find any discrepancies, you will want to immediately fix any errors, as this will probably raise your FICO score and help you in your quest to purchase a car.
Financing before shopping:
Before you start shopping for a car, shop around for financing. It is important to do this before you go to the car dealership. The excitement of test driving a nice car and the sweet tongues of smooth car salesmen will have you driving off the when you haven’t even secured financing. This is a big mistake because you should never take possession of a car until everything is in writing.
Tricky salesmen will sometimes goad you into taking possession of the car before all contracts and financing are finalized.
Once you have taken possession of the car, they will call you and tell you that the financing did not go through and then slap you with a higher interest rate.
You can shop for a loan at larger banks or smaller local banks. Each of them have their own advantages.
A larger bank may have a whole department totally decided to people with credit issues and so they will be very familiar with your situation. A smaller bank is likely to consider a car loan on a loan by loan basis. Walk into your local bank and sit down with a bank officer and explain your situation face-to-face. They are more likely to give you a loan once they understand your predicament. Also a face-to-face meeting will allow you to explain any discrepancies on your credit report.
A bank loan is preferred because a bank will not take advantage of the fact that you have poor credit by raising the price of the car, giving you a low trade in value or adding unnecessary extras like credit insurance and extended warranties.
Dealer Financing
If you are not able to secure a bank loan, your only choice is dealer financing. This is not a bad thing. You can still find a decent interest rate. The most important thing to remember here is not to get blinded by the interest rate. Some tricky dealerships might give you a low interest rate but hike up the price of the car or give you a low trade in value.
http://www.articledepot.co.uk/article-27035.htm
Wednesday, September 5, 2007
Debt Counseling - Tips on Avoiding Scams
If you are overwhelmed and decide to seek the services of a debt counseling agency, make sure you find a good one.
Before we delve into this topic, let me say that every trade has good people and bad people. Unfortunately, some debt counseling agencies give the good ones a bad name. With that said, there are PLENTY of legitimate Debt Counseling organizations that will help you manage your money and develop a budget that is suitable to your situation.
The first thing to do is RESEARCH. Look for a debt counselors in your area of residence that will work with you face-to-face. You may want to check with the State Attorney General or the Better Business Bureau (BBB) to get a sense of their reputation. Both sources can tell you if complaints have been filed against the counseling agency.
The FTC recommends asking questions such as the following, when looking for a good credit counseling service:
· What services do you offer?
Stick with debt counselors who offer a full range of services including budget counseling, savings and debt management classes. Avoid organizations that do not encourage you to analyze your current debts or financial situation. This is important as we discussed in step #4.
· Will you help me develop a plan for avoiding problems in the future?
· What are your fees? Are there set-up and/or monthly fees?
Get a specific price quote in writing.
· Will I have a formal written agreement or contract with you?
Do not sign anything without reading it first. Make sure all verbal promises are in writing.
· Are you licensed to offer your services in my state?
· What are the qualifications of your counselors? Are they accredited or certified by an outside organization? If so, by whom? If not, how are they trained?
· What assurance do I have that information about me (including my address, phone number, and financial information) will be kept confidential and secure?
In addition, avoid organizations that promise to:
· guarantee they can remove your unsecured debt
· promise that unsecured debts can be paid off with pennies on the dollar
· claim that using their system will let you avoid bankruptcy
· require substantial monthly service fees
· demand payment of a percentage of savings
· tell you to stop making payments to or communicating with your creditors
· require you to make monthly payments to them, rather than with your creditor
· claim that creditors never sue consumers for non-payment of unsecured debt
· promise that using their system will have no negative impact on your credit report
· claim that they can remove accurate negative information from your credit report.
http://www.articledepot.co.uk/article-27037.htm
Before we delve into this topic, let me say that every trade has good people and bad people. Unfortunately, some debt counseling agencies give the good ones a bad name. With that said, there are PLENTY of legitimate Debt Counseling organizations that will help you manage your money and develop a budget that is suitable to your situation.
The first thing to do is RESEARCH. Look for a debt counselors in your area of residence that will work with you face-to-face. You may want to check with the State Attorney General or the Better Business Bureau (BBB) to get a sense of their reputation. Both sources can tell you if complaints have been filed against the counseling agency.
The FTC recommends asking questions such as the following, when looking for a good credit counseling service:
· What services do you offer?
Stick with debt counselors who offer a full range of services including budget counseling, savings and debt management classes. Avoid organizations that do not encourage you to analyze your current debts or financial situation. This is important as we discussed in step #4.
· Will you help me develop a plan for avoiding problems in the future?
· What are your fees? Are there set-up and/or monthly fees?
Get a specific price quote in writing.
· Will I have a formal written agreement or contract with you?
Do not sign anything without reading it first. Make sure all verbal promises are in writing.
· Are you licensed to offer your services in my state?
· What are the qualifications of your counselors? Are they accredited or certified by an outside organization? If so, by whom? If not, how are they trained?
· What assurance do I have that information about me (including my address, phone number, and financial information) will be kept confidential and secure?
In addition, avoid organizations that promise to:
· guarantee they can remove your unsecured debt
· promise that unsecured debts can be paid off with pennies on the dollar
· claim that using their system will let you avoid bankruptcy
· require substantial monthly service fees
· demand payment of a percentage of savings
· tell you to stop making payments to or communicating with your creditors
· require you to make monthly payments to them, rather than with your creditor
· claim that creditors never sue consumers for non-payment of unsecured debt
· promise that using their system will have no negative impact on your credit report
· claim that they can remove accurate negative information from your credit report.
http://www.articledepot.co.uk/article-27037.htm
Identity Theft Prevention - Avoid Disaster
Identity theft is a malicious crime with serious implications. It can wreck havoc on your credit file, your ability to purchase a home in the future and interfere with potential job opportunities.
Approximately 246,000 cases of identity theft were filed between January, 2004 and December, 2004 – a staggering increase of 52% since 2002. Statistics of victimization by age group revealed that anyone from 18 to 65 is fair game. The breakdown by fraud subject were as follows:
· Credit card fraud – 28%
· Phone and utilities – 19%
· Bank fraud – 18%
· Employment – 13%
· Other (government documents, benefits, insurance, bankruptcy, etc) – 22%
So what is “Identity Theft”? Identity theft happens when, someone steals your personal information and commits fraud in your name. Examples include situations where your your name, social security number, home address and/or date of birth is used to open fraudulent credit card, telephone and utility accounts.
Perpetrators of identity theft should not be underestimated – some are clever and make a good living doing what they do. They have perfected ways to find your personal information and bleed you dry. Here are a few of their information pilfering methods:
· Obtaining your information while on the job or bribing someone who works in a certain organization to steal your information.
· Rummaging through your trash.
· Stealing your mail (including any bank and credit card statements, checks, tax information, etc.)
· “Skimming” your information by attaching devices to an ATM and stealing your information once you swipe your card and enter your PIN number.
· Hacking information databases.
· Stealing your wallet or purse.
· “Phishing” for information through phone calls or email under the guise of correcting errorneous information about your account.
Once they have acquired your information, they will use it in a number of ways to harm your personal finances. The FTC sites the following ways, in which they utilize your information:
· Open credit card accounts in your name and charge up the accounts. In order to avoid detection, they will file a change of address request with the local post office so that you do not receive your credit card bills. Out of sight – out of mind.
· Establish wireless and phone service accounts in your name.
· Buy an automobile in your name.
· Get an identification document such as a drivers license in your name.
· File a tax return in your name.
· Get a job in your name.
· Give your name to a police officer in an arrest and not show up to court.
· Open a bank account in your name and write bad checks.
· File for bankruptcy in your name to avoid paying for debts incurred in your name.
So what can you do? You cannot make yourself 100% theft-proof, when it comes to this crime but there signs to look for and ways to lessen the likelihood of becoming a victim of identity theft. Any of these signs should raise a red flag:
· Your credit report shows accounts that you are not familiar with. If you have not done so already, get your free credit report.
· You are not getting bills on time.
· You are receiving credit cards that you did not apply for.
· You are being denied credit.
· You are getting phone calls from debt collectors about an outstanding debt.
In addition, to monitoring red flags, the FTC recommends the following guidelines:
· Put passwords on all your credit card, utilities, bank, phone and wireless accounts. Avoid using the common passwords such as your mother’s maiden name, spouse’s name, date of birth, last four numbers of your social security number, phone number, etc. If a business uses one of these passwords, inquire about putting your own password on the account.
· Secure personal information, when you are having work done at your house or if you have roommates.
· Monitor your credit report every few months.
· Do not give out personal information over the phone, email or internet unless you are sure of the other person’s identity.
· Remove your mail promptly.
· Shred mail and trash with personal information .
· Deposit outgoing mail in the post office mail box rather than an unsecured mailbox.
· Do not carry your social security card with you.
· Do not give out your social security number unless it is necessary. If your state and medical insurance programs use your SSN as identification – you may request that they use another number.
· Pick up bank checks from the bank rather than through mail.
· Be cautious when responding to promotions.
· Run a virus protection software on your computer.
· Don’t open files that are from strangers.
· Use a firewall program especially if you have DSL or a T-1 line.
· Ensure that websites that you purchase products from or enter your personal information have SSL (secure socket layer) encryption. You will be able to tell by the “lock” on the bottom right-hand corner of your browser.
· Delete personal information before disposing of your computer.
If you believe that you are a victim of identity, fight back.
http://www.articledepot.co.uk/article-27038.htm
Approximately 246,000 cases of identity theft were filed between January, 2004 and December, 2004 – a staggering increase of 52% since 2002. Statistics of victimization by age group revealed that anyone from 18 to 65 is fair game. The breakdown by fraud subject were as follows:
· Credit card fraud – 28%
· Phone and utilities – 19%
· Bank fraud – 18%
· Employment – 13%
· Other (government documents, benefits, insurance, bankruptcy, etc) – 22%
So what is “Identity Theft”? Identity theft happens when, someone steals your personal information and commits fraud in your name. Examples include situations where your your name, social security number, home address and/or date of birth is used to open fraudulent credit card, telephone and utility accounts.
Perpetrators of identity theft should not be underestimated – some are clever and make a good living doing what they do. They have perfected ways to find your personal information and bleed you dry. Here are a few of their information pilfering methods:
· Obtaining your information while on the job or bribing someone who works in a certain organization to steal your information.
· Rummaging through your trash.
· Stealing your mail (including any bank and credit card statements, checks, tax information, etc.)
· “Skimming” your information by attaching devices to an ATM and stealing your information once you swipe your card and enter your PIN number.
· Hacking information databases.
· Stealing your wallet or purse.
· “Phishing” for information through phone calls or email under the guise of correcting errorneous information about your account.
Once they have acquired your information, they will use it in a number of ways to harm your personal finances. The FTC sites the following ways, in which they utilize your information:
· Open credit card accounts in your name and charge up the accounts. In order to avoid detection, they will file a change of address request with the local post office so that you do not receive your credit card bills. Out of sight – out of mind.
· Establish wireless and phone service accounts in your name.
· Buy an automobile in your name.
· Get an identification document such as a drivers license in your name.
· File a tax return in your name.
· Get a job in your name.
· Give your name to a police officer in an arrest and not show up to court.
· Open a bank account in your name and write bad checks.
· File for bankruptcy in your name to avoid paying for debts incurred in your name.
So what can you do? You cannot make yourself 100% theft-proof, when it comes to this crime but there signs to look for and ways to lessen the likelihood of becoming a victim of identity theft. Any of these signs should raise a red flag:
· Your credit report shows accounts that you are not familiar with. If you have not done so already, get your free credit report.
· You are not getting bills on time.
· You are receiving credit cards that you did not apply for.
· You are being denied credit.
· You are getting phone calls from debt collectors about an outstanding debt.
In addition, to monitoring red flags, the FTC recommends the following guidelines:
· Put passwords on all your credit card, utilities, bank, phone and wireless accounts. Avoid using the common passwords such as your mother’s maiden name, spouse’s name, date of birth, last four numbers of your social security number, phone number, etc. If a business uses one of these passwords, inquire about putting your own password on the account.
· Secure personal information, when you are having work done at your house or if you have roommates.
· Monitor your credit report every few months.
· Do not give out personal information over the phone, email or internet unless you are sure of the other person’s identity.
· Remove your mail promptly.
· Shred mail and trash with personal information .
· Deposit outgoing mail in the post office mail box rather than an unsecured mailbox.
· Do not carry your social security card with you.
· Do not give out your social security number unless it is necessary. If your state and medical insurance programs use your SSN as identification – you may request that they use another number.
· Pick up bank checks from the bank rather than through mail.
· Be cautious when responding to promotions.
· Run a virus protection software on your computer.
· Don’t open files that are from strangers.
· Use a firewall program especially if you have DSL or a T-1 line.
· Ensure that websites that you purchase products from or enter your personal information have SSL (secure socket layer) encryption. You will be able to tell by the “lock” on the bottom right-hand corner of your browser.
· Delete personal information before disposing of your computer.
If you believe that you are a victim of identity, fight back.
http://www.articledepot.co.uk/article-27038.htm
How to Read an Experian Credit Report
The Fair Credit Reporting Act (FCRA) requires each of the Nationwide Consumer Reporting organizations (Equifax, TransUnion and Experian) to provide you with one free credit report every 12 months per your request. This means that you are entitled to three free credit reports per year, if you deem it necessary. You can stagger the requests or order all of them at the same time.
Each of the National Consumer Credit Reporting bureaus have a unique credit report format, but in essence they provide you with the same information. When you receive your free Experian credit report following guidelines to read your report:
Personal Header Information
This section lists your full name, report number and report date. You will need to reference the report number, if you wish to contact Experian regarding your credit report.
Potentially Negative Information
Any information that may lead creditors to view you as a credit risk will be listed here. The following details will be listed: the name of the creditor, their address, your account number, account status, claim filed date, claim amount, claim resolved date and who bears the responsibility of resolving any claims or issues against the account.
In addition, this section will list any bankruptcies, foreclosures, judgments or liens in your credit history.
Credit Items
Here you will find all the credit accounts that you have or have had in the past. It will list the name of the creditor, their address, your account number, the type of account, the status of the account (e.g. paid or past due), the date on which the account was opened, the credit limit, payment terms (e.g. 12 months/year), monthly payments, recent balance and recent payment.
You will see a summary “credit history” for each of your accounts. The summary will indicate, whether the account has been to collections or was delinquent. In cases, where you are disputing items against the account, you will see a note indicating your dispute status.
Accounts in Good Standing
This is the good part. Every account you have listed here works towards a good FICO Score. You will find the name of the account creditor, their address, your account number, the type of account, the status of the account, the date on which the account was opened, the credit limit, payment terms (e.g. 12 months/year), monthly payments, recent balance and recent payment. If you closed the account, you will see a note indicating so.
Requests for your Credit History
Any inquiries against your credit file will be listed in this section. This section is divided into two subcategories: (a) Requests Viewed by Others (b) Request Viewed by You.
“Requests Viewed by Others” are inquiries against your credit report from creditors with whom, you have applied for credit lines or loans (e.g. mortgage loan or credit card application). Some inquiries may have been originated from potential employers. Each request will have details identifying the name of the requesting company, their address, the date on which they made the request and any comments regarding the request.
“Requests Viewed by You” are inquiries against your credit report by yourself or persons who have permission to review your credit file by law (e.g. creditors wanting to offer pre-approved credit, employer about to extend an offer of employment or consumer credit reporting bureau processing a request made by you). Each request will detail the name of the requesting company, their address, the date on which they made the request and any comments regarding the request.
Personal Information
This section will detail your personal information. “Names” will reflect all variations of your name (e.g. Sam J.Doe, Samuel J. Doe, S.J.Doe). Additional information will inclue your date of birth, social security number, current address, previous address, phone number, current employer and any personal statements that you have made to Experian regarding your credit report.
Note: By law, Experian cannot disclose medical information, therefore any accounts of the medical nature will be listed as “Medical Payment Data”.
You may also find the following credit report terms helpful:
· CURR ACCT – Account is current in payments and in good standing.
· CUR WAS 30-2 – Account is current was 30 days late twice.
· PAID – Account has been paid off and has a $0 balance and is inactive.
· CHARGEOFF – Unpaid balance on account was reported as a loss by creditor and the creditor is no longer seeking reimbursement.
· COLLECT – Account is severely delinquent and assigned to collections.
· FORECLOS – Property was foreclosed.
· BKLIQREQ – Debt was forgiven due to Chapter 7, 11 or 13.
· DELINQ 60 – Account is 60 days delinquent.
· INACTIVE – Account is inactive.
http://www.articledepot.co.uk/article-27039.htm
Each of the National Consumer Credit Reporting bureaus have a unique credit report format, but in essence they provide you with the same information. When you receive your free Experian credit report following guidelines to read your report:
Personal Header Information
This section lists your full name, report number and report date. You will need to reference the report number, if you wish to contact Experian regarding your credit report.
Potentially Negative Information
Any information that may lead creditors to view you as a credit risk will be listed here. The following details will be listed: the name of the creditor, their address, your account number, account status, claim filed date, claim amount, claim resolved date and who bears the responsibility of resolving any claims or issues against the account.
In addition, this section will list any bankruptcies, foreclosures, judgments or liens in your credit history.
Credit Items
Here you will find all the credit accounts that you have or have had in the past. It will list the name of the creditor, their address, your account number, the type of account, the status of the account (e.g. paid or past due), the date on which the account was opened, the credit limit, payment terms (e.g. 12 months/year), monthly payments, recent balance and recent payment.
You will see a summary “credit history” for each of your accounts. The summary will indicate, whether the account has been to collections or was delinquent. In cases, where you are disputing items against the account, you will see a note indicating your dispute status.
Accounts in Good Standing
This is the good part. Every account you have listed here works towards a good FICO Score. You will find the name of the account creditor, their address, your account number, the type of account, the status of the account, the date on which the account was opened, the credit limit, payment terms (e.g. 12 months/year), monthly payments, recent balance and recent payment. If you closed the account, you will see a note indicating so.
Requests for your Credit History
Any inquiries against your credit file will be listed in this section. This section is divided into two subcategories: (a) Requests Viewed by Others (b) Request Viewed by You.
“Requests Viewed by Others” are inquiries against your credit report from creditors with whom, you have applied for credit lines or loans (e.g. mortgage loan or credit card application). Some inquiries may have been originated from potential employers. Each request will have details identifying the name of the requesting company, their address, the date on which they made the request and any comments regarding the request.
“Requests Viewed by You” are inquiries against your credit report by yourself or persons who have permission to review your credit file by law (e.g. creditors wanting to offer pre-approved credit, employer about to extend an offer of employment or consumer credit reporting bureau processing a request made by you). Each request will detail the name of the requesting company, their address, the date on which they made the request and any comments regarding the request.
Personal Information
This section will detail your personal information. “Names” will reflect all variations of your name (e.g. Sam J.Doe, Samuel J. Doe, S.J.Doe). Additional information will inclue your date of birth, social security number, current address, previous address, phone number, current employer and any personal statements that you have made to Experian regarding your credit report.
Note: By law, Experian cannot disclose medical information, therefore any accounts of the medical nature will be listed as “Medical Payment Data”.
You may also find the following credit report terms helpful:
· CURR ACCT – Account is current in payments and in good standing.
· CUR WAS 30-2 – Account is current was 30 days late twice.
· PAID – Account has been paid off and has a $0 balance and is inactive.
· CHARGEOFF – Unpaid balance on account was reported as a loss by creditor and the creditor is no longer seeking reimbursement.
· COLLECT – Account is severely delinquent and assigned to collections.
· FORECLOS – Property was foreclosed.
· BKLIQREQ – Debt was forgiven due to Chapter 7, 11 or 13.
· DELINQ 60 – Account is 60 days delinquent.
· INACTIVE – Account is inactive.
http://www.articledepot.co.uk/article-27039.htm
Life After Bankruptcy: 7 Tips To Get Your Life On Track After Bankruptcy
A life in bankruptcy is not an unbearable phase if you look at it from a positive angle. If you found it unbearable, I'm sure you won't want to go through it again. While the court 'reorganizes' you by selling your personal assets to pay off your debts, so too you must reorganize your thoughts and look forward to live a life of prudence.
Here are 7 tips you can apply to get your life back on track as soon as possible so that you can find a way to return to a lifestyle of less financial worries and gradually break free from the shackles of an unpleasant past.
1) Seek sincere help. In modern societies where urbanites get too busy in their own lives, it is not surprising to have people whom you know suddenly turn their backs on you when you seek their assistance. It's like they are thinking, "I can't believe it. I've never been a bankrupt so why are you so deep in the dumps?" Forget about these people. Your immediate family will be the first to know your situation and only they can give you continued love and support. Make a checklist of names and how they can help you as much as what you can do for them, as well as (very) close friends whom you know can depend on.
2) Be responsible. And I mean REALLY responsible. Once bitten twice shy; don't get mired in debt again. You can blame on exorbitant increase in the cost of living, that business partner who sued you or the failing stock market but they are not going to say sorry anytime. It's time to take a critical look at your spending habits and evaluate them, understanding where you have wasted and invested your money. Do a monthly plan-and-review for your savings and expenditure. A very good hint of wastage is putting your money in places you don't know much of. Learn how to disengage from risks which you can't afford to get involved.
3) Get paid work immediately. Get your life productive again. There is no more greater blessing than learning to appreciate your ability to earn your keeps. Within your checklist, you should have a couple of people whom you can approach in this area. Leverage on your experience and expertise to make an offer of what you can contribute to their benefit.
4) Join a credit union. Such helpful organizations can offer loans which normal institutions like banks will not do otherwise, but make sure there's confidence on both sides that you can repay the loan.
5) Far too many people never had a concrete financial/retirement plan even though they know it's important. Engage a financial advisor to be your personal counsel. Set aside cash reserves for rainy days or emergencies. Find adequate insurance to protect your remaining assets and family. Avoid high-risk ventures or 'investments'.
6) Keep track of all debts due and paid to your creditors. Make sure your credit report is updated for the record.
7) Sharpen your financial literacy. Robert Kiyosaki, author of "Rich Dad, Poor Dad" is a strong advocate for personal fianancial education. You can always pick up financial literature along the way and think about how you may change the way you look at your wealth. You never know how truly rich people think differently about their money from the rest of us.
As the saying goes, "Time heal all wounds." It will take years to be a 'normal' person again, but once you know you have attained the discipline to practice good habits, there's no reason how you can fall back to the old self. As you become wiser, you can better inform others about the unhealthy influences of commercialism and consumerism.
http://www.articlebar.com/index.php?article=105&highlite=bankruptcy,articles
Here are 7 tips you can apply to get your life back on track as soon as possible so that you can find a way to return to a lifestyle of less financial worries and gradually break free from the shackles of an unpleasant past.
1) Seek sincere help. In modern societies where urbanites get too busy in their own lives, it is not surprising to have people whom you know suddenly turn their backs on you when you seek their assistance. It's like they are thinking, "I can't believe it. I've never been a bankrupt so why are you so deep in the dumps?" Forget about these people. Your immediate family will be the first to know your situation and only they can give you continued love and support. Make a checklist of names and how they can help you as much as what you can do for them, as well as (very) close friends whom you know can depend on.
2) Be responsible. And I mean REALLY responsible. Once bitten twice shy; don't get mired in debt again. You can blame on exorbitant increase in the cost of living, that business partner who sued you or the failing stock market but they are not going to say sorry anytime. It's time to take a critical look at your spending habits and evaluate them, understanding where you have wasted and invested your money. Do a monthly plan-and-review for your savings and expenditure. A very good hint of wastage is putting your money in places you don't know much of. Learn how to disengage from risks which you can't afford to get involved.
3) Get paid work immediately. Get your life productive again. There is no more greater blessing than learning to appreciate your ability to earn your keeps. Within your checklist, you should have a couple of people whom you can approach in this area. Leverage on your experience and expertise to make an offer of what you can contribute to their benefit.
4) Join a credit union. Such helpful organizations can offer loans which normal institutions like banks will not do otherwise, but make sure there's confidence on both sides that you can repay the loan.
5) Far too many people never had a concrete financial/retirement plan even though they know it's important. Engage a financial advisor to be your personal counsel. Set aside cash reserves for rainy days or emergencies. Find adequate insurance to protect your remaining assets and family. Avoid high-risk ventures or 'investments'.
6) Keep track of all debts due and paid to your creditors. Make sure your credit report is updated for the record.
7) Sharpen your financial literacy. Robert Kiyosaki, author of "Rich Dad, Poor Dad" is a strong advocate for personal fianancial education. You can always pick up financial literature along the way and think about how you may change the way you look at your wealth. You never know how truly rich people think differently about their money from the rest of us.
As the saying goes, "Time heal all wounds." It will take years to be a 'normal' person again, but once you know you have attained the discipline to practice good habits, there's no reason how you can fall back to the old self. As you become wiser, you can better inform others about the unhealthy influences of commercialism and consumerism.
http://www.articlebar.com/index.php?article=105&highlite=bankruptcy,articles
How to Repair Your Credit After Bankruptcy
When people live in a free market economy like America, good and bad can result as a direct consequence of people's actions. Some people may mass large sums of money while others may become bankrupt.
Just because you made some bad choices in the past, if you are really serious about it, you can repair your credit after declaring bankruptcy. In fact you will save a lot of money over time in interest charges by improving your credit score.
It's probably best to not try for credit for awhile except maybe a secured credit card. The reason is because the credit score is low and there will be turndowns showing on the credit report. It will stay low as long as you continue to try to get new credit and get rejected. It is better to pay cash for needed things unless there is an emergency.
You can expect your credit score to rise gradually and get back to normal range within up to ten years. That is if you do not get into more debt trouble and take some steps to improve your score. It may feel unreasonably long, but unfortunately credit is important in today's society and we don't have a lot of control over how our scores are determined. And you can be thankful that your debt has been eliminated by bankruptcy, so you have a second chance you wouldn't otherwise have.
What to Do to Repair Your Credit After Bankruptcy
Now don't hit your computer screen, but now that you are starting over, it is a great time to get a realistic financial picture, and that includes making a budget. I know, it makes my eyes glaze over, but once I knew where my money was going, I could make my financial goals come true. Without it you will just drift and make no progress.
Secondly, be sure to pay yourself first. Put money aside so you cannot easily get to it. Then plan out your purchases. Sure, have a little cash for impulse buys, but if you stay disciplined, you can avoid most of them as you see your finances improve and you feel the sense of accomplishment and independence your are achieving.
If impulse buying is a problem, develop a way to stop this type of impulsive buying. One way to develop good spending habits is to wait a day and see if it's still something that's necessary to buy. Many times, just waiting a day changes impulsive spending. Credit repair after bankruptcy will help people to become stronger financially and less likely to fall into a new credit problem.
Realize that you are more than your purchases. This may sound sort of strange when discussing financial problems, but I think it works. Your deeper happiness and satisfaction has nothing to do with what you own. And even Imelda Marcos was not buried with the hundreds of pairs of shoes she owned. As you find activities that bring true lasting joy, I think you will find that it will not include buying things. You will be spending less, be free from the debt burden of the past, and be repairing your credit after your bankruptcy.
http://www.add-articles.com/Article/How-to-Repair-Your-Credit-After-Bankruptcy/118954
Just because you made some bad choices in the past, if you are really serious about it, you can repair your credit after declaring bankruptcy. In fact you will save a lot of money over time in interest charges by improving your credit score.
It's probably best to not try for credit for awhile except maybe a secured credit card. The reason is because the credit score is low and there will be turndowns showing on the credit report. It will stay low as long as you continue to try to get new credit and get rejected. It is better to pay cash for needed things unless there is an emergency.
You can expect your credit score to rise gradually and get back to normal range within up to ten years. That is if you do not get into more debt trouble and take some steps to improve your score. It may feel unreasonably long, but unfortunately credit is important in today's society and we don't have a lot of control over how our scores are determined. And you can be thankful that your debt has been eliminated by bankruptcy, so you have a second chance you wouldn't otherwise have.
What to Do to Repair Your Credit After Bankruptcy
Now don't hit your computer screen, but now that you are starting over, it is a great time to get a realistic financial picture, and that includes making a budget. I know, it makes my eyes glaze over, but once I knew where my money was going, I could make my financial goals come true. Without it you will just drift and make no progress.
Secondly, be sure to pay yourself first. Put money aside so you cannot easily get to it. Then plan out your purchases. Sure, have a little cash for impulse buys, but if you stay disciplined, you can avoid most of them as you see your finances improve and you feel the sense of accomplishment and independence your are achieving.
If impulse buying is a problem, develop a way to stop this type of impulsive buying. One way to develop good spending habits is to wait a day and see if it's still something that's necessary to buy. Many times, just waiting a day changes impulsive spending. Credit repair after bankruptcy will help people to become stronger financially and less likely to fall into a new credit problem.
Realize that you are more than your purchases. This may sound sort of strange when discussing financial problems, but I think it works. Your deeper happiness and satisfaction has nothing to do with what you own. And even Imelda Marcos was not buried with the hundreds of pairs of shoes she owned. As you find activities that bring true lasting joy, I think you will find that it will not include buying things. You will be spending less, be free from the debt burden of the past, and be repairing your credit after your bankruptcy.
http://www.add-articles.com/Article/How-to-Repair-Your-Credit-After-Bankruptcy/118954
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